Twitter’s financials have just been leaked, and they don’t look great. Gawker’s Ryan Tate got his hands on figures from Twitter’s 2010-2011 financials, which show a company hemorrhaging money.
Twitter has been pushing its money-making ideas lately – like offering access to historical tweets for a price and displaying Promoted Products on their smartphone apps – and it’s no surprise: the company needs to start turning a profit, and fast.
Gawker’s numbers come from a “source with close knowledge of Twitter’s financials, [who] leaked us revenue, profit, and other figures from the company’s recent past.”
Both 2010 and the first quarter of 2011 show serious losses for this 6-year-old company.
The most recent numbers from the first quarter of 2011 show Twitter to have brought in $23.8 million in revenue and lost $49.2 million, which puts them at a net loss of $25.8 million for the first three months of 2011.
And 2010 was even worse, with revenue at $28.5 million, but a net loss of $67.8 million.
However, all of these numbers come from the months before Twitter created a whole batch of new advertising and money-making products, so you can bet that the later months of 2011 were much brighter.
For instance, Twitter is working on a self-serve ad platform that would let small and medium-sized businesses purchase ads similar to the way it’s done on Facebook. Of course, these buy-ins would be much smaller than the rumored $100,000+ it costs to buy a Promoted Trend, but the sheer volume of ads will likely increase to make up for that.
So although Twitter was on shaky financial ground a year ago, that has likely turned around. Whether they’re making a profit now isn’t certain, but their increased focus on revenue generation would indicate that they are at least close.